Modern Management: concepts and skills, 14/e

Environmental Analysis

The first step of the strategic management process is environmental analysis. In essence, an organization can be successful only if it is appropriately matched to its environment. Environmental analysis is the study of the organizational environment to pinpoint environmental factors that can significantly influence organizational operations. Managers commonly perform environmental analyses to help them understand what is happening both inside and outside their organizations and to increase the probability that the organizational strategies they develop will appropriately reflect the organizational environment.

To perform an environmental analysis efficiently and effectively, a manager must thoroughly understand how organizational ...